Japan's Semiconductor
and Digital Strategy
February 9 th, 2022
Ministry of Economy, Trade and Industry
IT Industry Division

The Necessity of planning the Semiconductor and Digital Industry Strategy• Integrate promotion of semiconductors, digital infrastructure, software and cloud,which are fundamental technologies in the digital domain.
• It is important to make progress based on the improvement of the convenience ofpeople's lives and industrial needs.

All Industry（inevitable digitization）

Cloud

Cyber Security

Digital Industry
Data CenterLocal Digital Industry

・・・

Digital Infrastructure
Semiconductor

Semiconductor

・・・
CommunicationEquipment

5G・・・2

Global structural changes surrounding Digital Technology【21st century】【20 th century】
EUUSA（１）Environmental Changes
in the Economic Security
JPNCHN
EUSecuring semiconductors is directly linked
to economic security

KOR（２）Digital Revolution
after Coronavirus
Oligopoly in Japan,US and Europe

JPN

All societies are digitized and semiconductors
are the core products of digital transformation.

（３）Overcoming energy andenvironmental constraints


USATWN

Rise of Taiwan and South Korea⇒ International strategic supplies

Energy saving and greening of semiconductors
are essential to aim for carbon neutrality in 2050.

（４）Strengthening resilience
The shortage of semiconductors impacts
enormously on all industries (supply chain risk).

（５）Japanʼs Decline
A part ofelectrical productsJapan's presence has declined in the last
30 years despite the expansion of
the global semiconductor market.

Progress of digital transformation and green⇒ Key part of security
and decarbonization（Source）TOKYO ELECTRON DEVICE LIMITED HP

3

Basic Semiconductor Revitalization Strategy in Japan
Step 1︓ Enhancement of Basic Production Capacity for IoT
2030
2025
2020

Data center,SSD

Market size︓$500 billionData center,
SSD

Market size︓$750 billion

Step 2︓Realization of Next Gene
Semiconductor Technology through
US – JP Collaboration(Reference)︓prepared by METI, based on data from OMDIA

Data center,SSD

Market size︓$1000 billion

Step 3︓RD For Future technology
Photonics-Electronics Convergence,
Quantum Computing through GlobalCollaboration
4

Step1:Advanced Semiconductor Production Capacity
１．JASM（ Joint Venture of TSMC（TW）, Sony（JP） and Denso（JP）） 【June 17, 2022】
Up to approx US$3.5 billion subsidy
New-Fab for Logic Semiconductor (12‒28 nm）
２．KIOXIA（JP） and Western Digital（US） 【July 26, 2022】
Up to approx US$700 million subsidy
Advanced 3D NAND Flash Memory Investment
3. Micron (US) 【September 30, 2022】
Up to approx US$320 million subsidy
Advanced DRAM(1β) Investment

5

Step1:General Semiconductor Production CapacityChallenge20% Demand Growth in 2021 from 2019
Only 8% Supply Growth (Operation Rate is 95%)
Solution
Production Capacity Expansion
For Power Chip, Analog Chip, etc, (Low Investment Incentive in Private)“Subsidy Program for Indispensable Semiconductors” ($340M)
 Support Capital Investment in 27 Factories out of 81 in Japan (33%)

6High Functional
Low power
semiconductors

Next Generation Computing Platform

GX Trend

DX Trend

High Functional
Edge Devices

Simulation Needs
Nation security

Natural disaster

Material R&D・・・

5G/Post 5G
Beyond 5G

AI semiconductor

Sensor ×AI semicon
On-board

Autonomous vehicle Smart factory

Robotics

・・・【Computing Resource manager】(Optimally combining and controlling various and distributed computing infrastructure)

High speed
Low Pewer
semiconductors

Ultra-high-speed, high-capacity optical network

・・・
Ultra high performance
CPUQuantum gate Quantum annealing【 Quantum】
AI acceleratorSupercomputer

・・・
High performance computer

AI computer【 Classical】On-board

Basic Principles on Semiconductor Cooperation (May 4, 2022)
Mr. HAGIUDA Koichi, Minister of Economy, Trade and Industry of Japan, and Ms.
Gina Raimondo, U.S. Secretary of Commerce, met on May 4th, 2022.
The Minister and the Secretary intend that bilateral semiconductor supply chain
cooperation be guided by the following basic principles:
1. based on open markets, transparency, and free trade,
2. with a shared objective to strengthen supply chain resiliency in Japan, theUnited States, and other like-minded countries and regions; and3. in a mutually accepted and complementary manner.
The Minister and the Secretary also highlighted the importance of bilateral
cooperation, especially on strengthening and diversifying semiconductor
production capacity, promoting workforce development, increasingtransparency, coordinating emergency response to semiconductor shortages,and enhancing R&D cooperation, together with like-minded countries and regions
as appropriate.
We will continue to advance our joint efforts on the basis of these principles.
8

Step2:Beyond 2nm Next Generation Semicon TechJapanabroad

Drastic Technology Change from Fin-Fet to GAA

Japan is 10 years behindfrom Global Trend

U.S.

Challenges
 Development of use cases utilizing
next-generation semiconductors
 Establish knowledge of nextgeneration semiconductor
development and manufacturing Education of human resources<Roadmap>

Korea
Ger
many

<Roadmap>

Taiwan<Roadmap>

Start production

Next Generation Semiconductor

TSMC Japan
Fin-FET introduction

45nm

28nm

22nm

GAA introduction (plan）

16/12nmPlanar-FET

Fin-FET

Gate

Gate

Channel★︓GAA structure

7nm

5nm

3nm

2nm

BeyondGate-All-Around
Gate
ChannelChannel
9Same gate width in smaller area ＝high integration

Project Framework for Next Generation Beyond 2nm Project (B2P)<METI announcement on 11th Nov.>: Establishment of Two Entities for B2P
1. “LSTC”: Open Collaborative R&D Platform※Leading-Edge Semiconductor Technology Center

2. “Rapidus”: Mass Production Entity (Inc.)

Mass Production“Rapidus”

Open R&D“LSTC”

Mass Production
Design Function

R&D forDesign Tech

US NSTC, IBM, IMEC, etc

Pilot Line
@RapidusMass Production
Line@Rapidus
Commercialization

JP Private Companies
Kioxia, Sony, SoftBank, Denso,Toyota, NEC, NTT, MUFG

• Research Labs & Academia
in Like-minded Countries :R&D
RequirementEquipment/materials■Oversea Collaboration

R&D for Equips/
Materials
JP Academia
JP National Research Labs

■Domestic Collaboration• Semicon User Companies• Digital Design Labs
• Material & Machinery
Companiesetc

10Process for Next-Generation Semiconductor R&D Project• 70B JPN Yen will be allocated to Rapidus (announced on Nov. 11)• R&D Theme by Rapidus; 2nm-node Transistor Integration
Technology and Short TAT *1 Production Technology through theCooperation between Japan and the US• Will cooperate with IBM and others to develop technologies for 2nm-node logic semiconductors, build short TAT pilot lines inJapan and conduct verifications using test chips.
• In FY2022, will acquire the elemental technologies for 2nmnode semiconductors, begin installing EUV lithographyequipment, formulate specifications for production equipment,
transport systems, and production management systems
necessary for short TAT production system, and deploy the initialdesign for pilot line (70 B JPN Yen*2).
• Will aim to commercialize next generation logic foundry after theR&D project※1 TAT: Turn Around Time
※2 $1 = 140 JPN Yen11

Mass production base: Rapidus Corporation• A company established with the endorsement of major Japanese companies that gathers toplevel engineers from all over Japan in order to create a mass production base for nextgeneration semiconductors.
• It has been selected to carry out the research and development project toward the establishment ofdesign and manufacturing bases for next-generation semiconductors in the latter half of the2020s.
• Together with LSTC, Rapidus will aim to build a mass production base for next-generation
semiconductors in Japan.
■ Investing CompaniesCompany■ Rapidus Corporation main principal officers

Investment
amount(Billion)

Kioxia1 billionSony

1 billion

Soft Bank

1 billion

Denso

1 billion

Toyota1 billion

NEC1 billion

NTT

1 billion

MUFG Bank

0.3 billion

Position

Name

Executive Chairman

HIGASHI Tetsuro

President and Representative
Director

KOIKE Atsuyoshi

The system may be expanded in the future
12 inaccordance with Rapidus Corporation's activities.

Schedule for Next-Generation Semiconductor R&D Project• METI and the US Department of Commerce will continue to manage theprogress of the project through a Japan-US joint task force based on theJapan-US Summit agreement.
• LSTC and US NSTC will cooperate, gathering the best and brightest fromboth countries.
• Japan & US and the public & private will share roles appropriately andcooperate closely.
2022 and later

Basic Research (US)e.g., New York Statesʼ
Investment of $15B
in Albany*
Source: From the NY
CREATES website

Gate All Around
Nanosheettechnology
Source: IBM website

Later half of the 2020s

Process Development for Mass Production(JPN)

Mass production &Development (JPN)

Deployment

EUV lithography equipment
Source: ASML website

13

LSTC Open Collaborative R&D Platform
Chairman
Tetsuro Higashi
Under Discussion in Japan

Chief in Academia
Makoto Gonokami

 Design Technology Development
 Device Technology Development(GAA transistors and later) Process and Equipment TechnologyDevelopment (short TAT) Material Development

 3D Packaging Technology Development
 Human Resource Development
 Use-Case Creation Hub

US NSTC,imec, etc.

Overview of Semiconductor human resource development
 Develop the professional human resources to supply of next-generation
semiconductor and create the use cases through global collaboration.
 Expand to the regional basis in consideration of the characteristics of eachregion and private sector is expanding these efforts nationwide.
（１）Development of the Global Professional human resources
Next Generation X‐nics semiconductor Creation BaseJapan NSTC
AIST, RIKEN, NEDO, NIMS,KEK, Tokyo univ, Tokyo Tech,
Tohoku univ. Tsukuba univ.
Develop the future humanresources to supply of nextgeneration semiconductor andcreate the use case.

Agile-X〜Democratization
Base for Innovative
Semiconductor Technology(Tokyo univ.)

Develop the innovative
human resources throughadvanced fusion ofhardware and software.

Integrated Green-niX（Tokyo Tech, Hiroshimauniv. etc.）
Development of recurrent
human resources for working
through trial production lines
for experiencing all processes.

（２）Efforts of Each Regional BasisKyushu Human Resource
Development Consortium（Industry）SONY, JASM（Academia）Kyushu univ.,
Kumamoto univ.
（Government）Kyushu Bureau of
Economy, Trade and Industry, METI

Tohoku Semiconductor andElectronics Design Study Group（Industry）KIOXIA Iwate,（Academia）Tohoku univ.
（Government）Tohoku Bureau of
Economy, Trade and Industry,
METI
Effort of JEITA

Support of the Industry Organization

Center for Spintronics
Integrated Systems（Tohoku univ ）Development of humanresources who canoverlook the entire
technology value chain

Promote to nationwide
Chugoku Region Semiconductor
Industry Promotion Council（Industry）Micron（Academia）Hiroshima univ.
（Government）Chugoku Bureau ofEconomy, Trade and Industry, METI・・・

・ Human Resources development Project︓Visiting Class, Factory Tour, Support to Technical College
・ Human Resources Forum in CEATEC.
15